Thursday, July 29th, 2010
Top Analyst Stock Picks and Recommendations
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Dollar Thrifty Automotive Group, Inc. (NYSE:DTG), Quality Distribution, Inc. (NASDAQ:QLTY) and United Therapeutics Corporation (NASDAQ:UTHR) are three top analyst stock picks and recommendations made today.
Dollar Thrifty Should See a Higher Offer
Dollar Thrifty Automotive Group, Inc. (DTG, Free Analysis), a vehicle rental company focused on business and leisure rentals, should see an offer greater than $46.50 per share by rival Avis Budget Group Inc. (CAR, Free Analysis), according to MKM Partners. The analyst also insisted that any deal between the two companies would be accretive to earnings.
On Wednesday, Avis bid $46.50 per share for rival Dollar Thrifty, consisting of $39.25 in cash and 0.6443 shares of Avis stock for each share of Dollar Thrifty. The merger contains essentially the same terms as the Hertz merger agreement, but also includes removing matching rights, eliminating break-up fees, and increasing commitment to secure antitrust approvals. Hertz’s offer was for $41 per share in April.
Click Here: Get a Complete DTG Stock Analysis for Free!
Quality Distribution Upgraded after Earnings
Quality Distribution, Inc. (QLTY, Free Analysis), a provider of chemical trucking services in North America, was upgraded to a Buy with a $9.00 per share price target by Stifel Nicolaus. At a 39.1% premium to the current market price, the upgrade reflects a solid second quarter earnings report, improved balance sheet, and effective cost reduction efforts.
On Wednesday, the trucking firm reported earnings of 10 cents per share, compared to 7 cent estimates, on revenues of $177.6 million, versus a consensus of $164.7 million. The quarter reflects the earnings power of the company’s platform in light of a still-recovering economy, according to CEO Gary Enzor, while its leaner cost structure also yielded more dramatic earnings improvement.
Click Here: Get a Complete QLTY Stock Analysis for Free!
United Therapeutics Should be “Bought Aggressively”
United Therapeutics Corporation (UTHR, Free Analysis), a biotechnology company, was on the receiving end of positive comments out of Oppenheimer and Auriga. The analysts suggested that the stock should be bought aggressively and that investor disappointment is overblown and unjustified. Meanwhile, Auriga reiterated its Buy rating on the stock with a $70.00 per share price target.
On Wednesday, the biotechnology company reported earnings of $1.09 per share, versus a consensus of $0.45 per shares, on revenues of $137.5 million, versus a consensus of $140.5 million. Investors punished the stock following the results a sit dropped more than 8.7% on the day. Among the biggest concerns is Tyvaso’s launch schedule and market potential.
Click Here: Get a Complete UTHR Stock Analysis for Free!
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-- Written by Simon Monger
